What Is the Madrid Stock Exchange (MAD) .MA? The Madrid Stock Exchange is the largest securities market in Spain. It is also known as the Bolsa de Madrid. In 1809, Jose I Bonaparte attempted to establish Spain’s first stock exchange in Madrid, but it failed because Madrid was not a major business center. It wasn’t until
What Is Modified Adjusted Gross Income (MAGI)? The term modified adjusted gross income (MAGI) refers to an individual’s adjusted gross income (AGI) after taking into account certain allowable deductions and tax penalties. It is an important number to understand since it can help reduce an individual’s taxable income (to account for your retirement account contributions)
What Is Magna Cum Laude? Magna cum laude is an academic honorific used by educational institutions to signify that an academic degree was earned with notable distinction. Magna cum laude is a Latin phrase that translates into English as “with great praise” and is one of three commonly used academic degree honors—the others being summa
Magnetic Ink Character Recognition (MICR) Line Magnetic ink character recognition (MICR) is a technology used primarily to identify and process checks. The MICR on a check is the string of characters that appears at the bottom left of the check. It consists of three groups of numbers, including the bank routing number, the customer’s account
What Is a Lot (Securities Trading)? Lots in securities and trading represent the number of units of a financial instrument bought on an exchange. Typically, the number of units is conveyed by the lot name. For example, in the stock market, a round lot is 100 shares. However, investors do not have to buy round
What Is a Lottery Bond? A lottery bond is a government bond most famously issued by the United Kingdom’s National Savings and Investments (NS&I). The bond gives the holder a chance to win a random monthly drawing for a tax-free cash prize. The bonds do not pay interest, but they do encourage saving. However, like
What Is Love Money? Love money refers to seed capital that has been extended by family or friends to an entrepreneur to start a business venture. The decision to lend money and the terms of the agreement are usually based on the relationship between the two parties, instead of a formulaic risk analysis. Key Takeaways Love
What Is a Low Volume Pullback? A low volume pullback is a technical correction toward an area of support that occurs on lower-than-average volume. Since the move occurs on low volume, traders often attribute the pullback to weak longs locking in profits rather than a reversal. Key Takeaways Low volume pullbacks occur when the price
What Is the Lower of Cost or Market Method? The lower of cost or market (LCM) method states that when valuing a company’s inventory, it is recorded on the balance sheet at either the historical cost or the market value. Historical cost refers to the cost at which the inventory was purchased. The value of
What Is Long-Run Average Total Cost (LRATC)? Long-run average total cost (LRATC) is a business metric that represents the average cost per unit of output over the long run, where all inputs are considered to be variable and the scale of production is changeable. The long-run average cost curve shows the lowest total cost to
